Second Quarter Securities Firms' Net Profit Reaches 2.9 Trillion Won... Up 60% from a Year Ago

In the second quarter of this year, securities firms' net profit increased by 60% compared to a year earlier. Analysts attribute this improvement in performance to a favorable stock market environment, which led not only to higher commission income but also to increased profits related to foreign exchange and lending.

On September 4, the Financial Supervisory Service announced through its '2025 Second Quarter Operating Results (Provisional) for Securities and Futures Companies' that the net profit of 60 domestic securities firms reached 2.8502 trillion won in the second quarter. This figure represents an increase of 407.4 billion won (16.7%) from the previous quarter and 1.0683 trillion won (60.0%) from the same period last year. The return on equity for securities firms in the second quarter was 3.1%, up 0.4 percentage points from the previous quarter and 1.0 percentage point higher than a year earlier.

High-rise buildings in the Yeouido financial district. Photo by Younghan Heo younghan@

By major category, securities firms' commission income rose by 486.1 billion won (14.4%) from the previous quarter to 3.8507 trillion won. Custody commissions totaled 1.9037 trillion won, while investment banking commissions amounted to 1.0809 trillion won. These figures represent increases of 17.6% and 14.5%, respectively, compared to the previous quarter.

In the second quarter, securities firms' proprietary trading profit slightly increased to 3.2444 trillion won from the previous quarter. During the same period, other asset-related profits rose by 544.8 billion won to reach 1.7783 trillion won. Lending-related profit was 1.0708 trillion won, and foreign exchange-related profit was 707.5 billion won. Selling and administrative expenses increased by 342.8 billion won from the previous quarter to 3.5189 trillion won.

An official from the Financial Supervisory Service explained, "Commission income and profits related to lending and foreign exchange increased due to a favorable stock market environment," adding, "As stock trading volume rose on expectations of market revitalization, both large and small-to-medium-sized firms saw improved results, mainly in custody commissions. Large firms improved in the investment banking sector, while small-to-medium-sized firms saw gains in proprietary trading."

As a result, as of the end of June, the total assets of securities firms stood at 851.7 trillion won, up 53.2 trillion won (6.7%) from the end of March. Total liabilities also increased by 49.6 trillion won (7.0%) to 755.2 trillion won. Equity capital rose by 3.6 trillion won (3.9%) to 96.5 trillion won.

The average net capital ratio of securities firms stood at 835.6% as of the end of June. Every securities firm exceeded the regulatory ratio of 100%. The average leverage ratio was 666.4%, with all firms meeting the regulatory requirement of 1,100% or less.

In addition, the combined net profit of the three futures companies in the second quarter was 22.53 billion won, an increase of 2 billion won (9.7%) from the previous quarter. However, this was a slight decrease compared to a year earlier. During the same period, the return on equity was 3.1%.

As of the end of June, the total assets and total liabilities of the three futures companies were 6.2894 trillion won and 5.5265 trillion won, respectively, up 1.6% and 1.3% from the end of March. Equity capital increased by 3.9% to 762.9 billion won. The average net asset ratio at the end of June was 1,558.0%, up 69.6 percentage points from the end of March.

An official from the Financial Supervisory Service stated, "There are concerns that uncertainty in the financial markets may increase due to factors such as the impact of U.S. tariff impositions, sluggish domestic construction, and worries over a global economic slowdown. We will continue to monitor the potential for deterioration in the soundness of securities firms and guide them in proactively disposing of non-performing assets. At the same time, through the restructured promissory notes and IMA, we plan to encourage and support the financial investment industry to stably supply venture capital."

This content was produced with the assistance of AI translation services.